Iran’s Sajad Mashayekhi scored 19 points, while Guna Ra scored 23 points for South Korea.
Team Melli is scheduled to meet winner of Japan and Saudi Arabia for the 5th-6th place on Friday.
A record high of nearly 12,500 athletes from 45 countries and territories compete across 40 sports in the 2022 Asian Games.
Iran has sent 289 male and female athletes to the Games in 34 sports events.